Correlation Between Ecovyst and Viking Holdings
Can any of the company-specific risk be diversified away by investing in both Ecovyst and Viking Holdings at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Ecovyst and Viking Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ecovyst and Viking Holdings, you can compare the effects of market volatilities on Ecovyst and Viking Holdings and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Ecovyst with a short position of Viking Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ecovyst and Viking Holdings.
Diversification Opportunities for Ecovyst and Viking Holdings
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ecovyst and Viking is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Ecovyst and Viking Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viking Holdings and Ecovyst is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Ecovyst are associated (or correlated) with Viking Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viking Holdings has no effect on the direction of Ecovyst i.e., Ecovyst and Viking Holdings go up and down completely randomly.
Pair Corralation between Ecovyst and Viking Holdings
Given the investment horizon of 90 days Ecovyst is expected to generate 1.0 times less return on investment than Viking Holdings. But when comparing it to its historical volatility, Ecovyst is 1.53 times less risky than Viking Holdings. It trades about 0.21 of its potential returns per unit of risk. Viking Holdings is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 4,567 in Viking Holdings on October 25, 2024 and sell it today you would earn a total of 214.00 from holding Viking Holdings or generate 4.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ecovyst vs. Viking Holdings
Performance |
| Timeline |
| Ecovyst |
| Viking Holdings |
Ecovyst and Viking Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ecovyst and Viking Holdings
The main advantage of trading using opposite Ecovyst and Viking Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ecovyst position performs unexpectedly, Viking Holdings can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Viking Holdings will offset losses from the drop in Viking Holdings' long position.| Ecovyst vs. Orion Engineered Carbons | Ecovyst vs. Cabot | Ecovyst vs. Minerals Technologies | Ecovyst vs. Quaker Chemical |
| Viking Holdings vs. Origin Materials | Viking Holdings vs. Bank of New | Viking Holdings vs. Ecovyst | Viking Holdings vs. NL Industries |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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